What You Need to Know About Being Sued for Debts in Philadelphia

What You Need to Know About Being Sued for Debts in Philadelphia

One of the biggest threats creditors have at their disposal is their legal right to sue debtors over unpaid bills. As Philadelphia bankruptcy lawyers we’ve seen this event become the proverbial straw that breaks a debtor’s back more times than we can count.

Picking up the phone to call a bankruptcy lawyer is a good impulse once you’ve been served. A law suit is nothing to take lightly. Being sued by a creditor carries a host of consequences you probably don’t want to deal with.

Wage Garnishment

While Pennsylvania is one of four states which will not allow creditors to garnish your wages there are exceptions. Your wages may still be garnished if the creditor is a landlord seeking unpaid rent and damages, if the debt in question is an unpaid child support debt, or if the debt in question is a federal debt, like a student loan.

This is all good news if the plaintiff is a credit card company. However, the inability to garnish wages does not leave creditors without recourse.

Levies

Though certain restrictions apply, creditors may be able to reach into your bank account. There are some exemptions. Pennsylvania has a $300 statutory exemption. And if you have less than $10,000 in your bank account creditors won’t be able to seize income direct deposited from a paycheck, disability check, or social security check.

Nevertheless, few people want to wake up and discover someone has helped themselves.

Liens

Any creditor who wins a judgment against you may place a lien on your home, making it impossible to sell or refinance the home until the debt is resolved. This could create some real messes if, say, your employer chooses to transfer you to another state.

Credit Reporting

Unpaid judgments stay on your credit report for seven years, exactly as long as a Chapter 13 bankruptcy does. However, a judgment hurts your credit far more than a bankruptcy does. It is the most derogatory of all derogatory debts. You can salvage your credit after a bankruptcy. Salvaging your credit after a judgment is all but impossible.

Bankruptcy: A Way to Stop the Lawsuit

Declaring bankruptcy is a smart move if you’re already being sued. The “automatic stay” you receive upon filing puts an end to any attempts to continue litigating your suit.

Thus, when you are being sued bankruptcy is one of the most powerful tools in your toolbox.

Ignoring the lawsuit is the absolute worst thing you can possibly do.

Many debtors get so overwhelmed when they realize they’re being sued they are tempted to simply ignore the problem. They figure they can’t pay the debt anyway ,so they bury their heads in the sand and hope everything will go away.

But if you don’ show up in court you automatically lose your case. The judge enters a “default judgment” against you. The creditor is now free to pursue all of the above-mentioned consequences.

Believe it or not, there are ways a good lawyer can defend you if you’re being sued for an unpaid debt. You may not even have to declare bankruptcy. You do, however, have to face the problem head on. Start by contacting the law offices of Sadek and Cooper for your free consultation. We’re ready to help you take your life back.

GET YOUR FREE CONSULTATION

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SEEWHAT OUR CLIENTS ARE SAYING

Lavern Baker
Lavern Baker
17:03 23 Feb 18
You are all super lawyers. Brad and Matt made me feel comfortable. Every one in your office so nice and just made it easy. You’re the best!
peter b
peter b
19:42 21 Feb 18
Thank you, Sadek and Cooper Law offices for your dedication on my behalf. I appreciate Matthew and Patrick and your staff and all that everyone did to support me in this legal matter. You took an embarrassing, sad experience, for me, and turned it into a successful solution without all the emotional pain expected. After dealing with a loan modification company for over eighteen months without going to an attorney first that is the biggest mistake anyone can make. The Modification Companies set out to sell you lies, broken promises and dilute the homeowner's assets with no knowledge of any kind of law. I can't stress enough stay away from Modification companies, as a Military Veteran and family man, protect you or your family best interest. Go directly to Sadek and Copper you will not regret it! This firm moves with Super speed and diligence protecting you and your family's the entire process, even after watching some of these other attorneys in the courtroom appearing to mishandled their clients’ cases before the Trustee. You made it easy and I’m finally getting my financial life back on track! Thank you for your prompt replies to me, your clear information and preparation needed when at the courthouse. I would of course recommend you to others and I am glad you were the one who had my case. Kind genuine law firm who treats you like family. God bless you all and I pray for your continued success in your field of expertise. This firm is Super Lawyers for a reason. They are the best at what they do! Pete
Doug Tinlin
Doug Tinlin
06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
Jacinth Jacinth
Jacinth Jacinth
16:07 31 Jan 18
Excellent service. Brad and Matt were outstanding and friendly. They helped me through this. I’ve never met attorneys like these. Thank you!
julie njoku
julie njoku
12:29 24 Jan 18
Brad Sadek is excellent!. He understands and he's fair. You feel like you have someone fighting for you. The staff is friendly, professional, and courteous. These guys are the best at what they do !
Owen Black
Owen Black
20:14 09 Jan 18
Thanks for the great service! I would recommend this firm highly. Throughout the years I have been helped by this firm greatly and very much appreciated.
Steven Rychalsky
Steven Rychalsky
15:30 09 Jan 18
Sadek and Cooper law office was a wonderful experience to work with. Bankruptcy is a difficult experience but they helped with the stress so much and made it easy. I would recommend Sadek and copper too anyone.
Chris Kourelias
Chris Kourelias
19:09 28 Dec 17
Working with both Brad & Matthew was a pleasure. Both gentlemen are extremely knowledgeable and helpful in providing me the right assistance needed to make the correct decision to benefit me in the long run. I would recommend both candidates to anyone looking for assistance with a reputable law firm.
Jennyfer Santana
Jennyfer Santana
21:17 21 Dec 17
Highly Recommended. Matt & Brad assisted with my case. I felt comfortable throughout the entire process. Matt was very understanding, patient, and ensured he answered all my questions! Both great guys and very friendly! It was a pleasure working with Matt and Brad.
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